We offer to your attention a brief summary of the publication of the Director of the Center for Researches on Army, Conversion and Disarmament Valentina Budrak in the Internet edition of the newspaper of the Verkhovna Rada of Ukraine “Holos Ukrainy”

Ukraine’s defense industry needs investment, technology and professional management. For example, to eliminate the problems of establishing joint ventures with foreign partners of enterprises (namely, this will ensure the entry of powerful investors into the Ukrainian market) it is necessary to give enterprises of all forms of ownership the right to carry out foreign-economic activity under the supervision of the state, but without the obligatory appeal to special exporters with the introduction of the state production certification. This will not only reduce actual costs (roughly 5-7%), which will be deducted in the form of commission special exporters, but will also make it possible for the investor to sell products to third countries (together with Ukrainian partners and production on the territory of Ukraine). Strike on Ukrspetsexport will not be – it will cost only 10-20 powerful companies, the remaining 100-150 will use its services.

If we take the issues of the development of the domestic market, it is necessary to legislatively fix the involvement of private entrepreneurs in the realization of the tasks of the defense industry and the development of public-private partnership. And also to provide state financing of the preparation of mass production of defense products at enterprises of all forms of ownership in case of its inclusion on an order. It is also necessary to take into account a monetary reward in the implementation of developments (royalty). And also improve the activities of military missions in terms of quality control of products, and not the harmonization of calculation and costing materials.

But a more significant issue is the creation of an executive body in the government structure, which would form and implement a military-industrial policy of the state. The latter should include the development by the Cabinet of Ministers of Ukraine of the principles of the national system of certification of weapons and military equipment according to NATO standards and the task of establishing a network of laboratories for testing domestic weapons manufactured under Alliance standards. On the decision of this issue for a long time insists the most powerful association of the private segment of the defense industry – the League of Defense Enterprises of Ukraine. In view of the presence of 16 customers, this body is also called to form the general need of all law enforcement agencies, responsible for the introduction of new technologies, the creation of joint with foreign partners of productions, the unification and standardization of weapons, including the establishment of a network of testing laboratories.

Also, this body must ensure that support for imports is not hit by domestic producers.

HS “League of Defense Enterprises of Ukraine” appealed to the leadership of the National Bank with a proposal to consider the possibility of introducing for the OPC special regime for lending under war conditions. However, the NBU stated that there were no levers of influence on the initiated OPK review of the policy of defense industry lending in wartime. And offered to address these problems, ask the Verkhovna Rada to adopt a number of laws on the peculiarities of managing state-owned banks, restoration of lending, as well as increasing the efficiency of bankruptcy proceedings.

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